FTW 2 April 2010

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Freight and Traiding Weekly 2 April 2010

Transcript of FTW 2 April 2010

  • The Freight Communitys Weekly Newspaper for Import / Export decision makers on subscriptionFRIDAY 2 April 2010 NO. 1904




    Centenary celebrations!By Liesl Venter

    In a major milestone for logistics major Safcor Panalpina, the company has celebrated its centenary year at a series of functions for customers, suppliers and staff in Johannesburg, Durban, Cape Town and Port Elizabeth.

    In 1910 innovative businessman Fred Goldman spotted an opportunity delivering cargo in and around Johannesburg. He sealed his deals with a simple handshake before sending his mule carts to make deliveries timeously.

    Today, the fledgling company established by Goldman still delivers cargo timeously but they do it around the world on a scale that would have left him gaping.

    This is an incredible achievement for any company but more so for one operating in the tough environment of freight, said Brian Joffe, chief executive of The Bidvest Group, which bought Safcor Panalpina some 18 years ago.

    Today the company has an international network of over 500 offices in 80 countries and partner companies in a further 80.

    Celebrating a milestone Anthony Dawe, acting managing director, Safcor Panalpina and CEO of Bidfreight; Lukas Fischer, managing director, Sub Sahara, Panalpina; Monika Ribar, president and CEO of Panalpina; Brian Joffe, CE of The Bidvest Group and Svetlana Glavic, Panalpina delegate.

    Industry condemns Chinese kickbacksThe answer is to insist on buying ex-works or FOB

    By Joy Orlek

    Despite industry-wide condemnation, the China import service fee (CISF) appears to be here to stay.

    Particularly prevalent on the China and India routes, its beginning to spread globally and involves a kickback paid

    to the overseas exporter by his appointed forwarder or groupage operator.

    Effectively, for every cubic metre imported, NVOCCs are paying kickbacks of up to US$50 per freight tonne back to the exporter and if they dont comply they simply lose the business.

    Managing director of independent consolidator CFR Freight, Martin Keck, was the first to publicly condemn it several years ago. At the time he called for intervention to prevent further escalation.

    Although perhaps not illegal, an industry source said it was certainly unethical

    and appeared to go against the terms of sale. She cited an instance where a CIP Durban contract with freight and insurance prepaid reflected an amount equal to the ocean freight as a CSIF fee in US dollars on the local degroup agents invoice. This had to be paid before release

    could be effected. Furthermore, as is

    becoming more and more common, the cargo which could have been sent in a 20 ft GP FCL was shipped in a 40 ft groupage box with substantially higher SA land side charges, she said.

    To page 8


    Editor Joy OrlekConsulting Editor Alan PeatContributors Liesl VenterAdvertising Carmel Levinrad (Manager)

    Yolande Langenhoven Gwen Spangenberg Jodi Haigh

    Managing Editor David Marsh

    CorrespondentsDurban Terry Hutson

    Tel: (031) 466 1683Cape Town Ray Smuts

    Tel: (021) 434 1636 Carrie Curzon Tel: 072 674 9410Port Elizabeth Ed Richardson

    Tel: (041) 582 3750Swaziland James Hall

    [email protected]

    Advertising Co-ordinators Tracie Barnett, Paula SnellLayout & design Dirk VoorneveldCirculation [email protected] by JUKA Printing (Pty) Ltd

    Annual subscriptions RSA R425.00 (full price)

    R340.00 (annual debit order) Foreign on application.

    Publisher: NOW MEDIAPhone + 27 11 327 4062

    Fax + 27 11 327 4094E-mail [email protected]

    Web www.cargoinfo.co.za

    Now Media Centre 32 Fricker Road, Illovo Boulevard,

    Illovo, Johannesburg. PO Box 55251, Northlands,

    2116, South Africa.

    2 | FRIDAY April 2 2010

    Anti-Dumping AmendmentsThe anti-dumping duty on garlic, fresh or chilled and dried garlic, in the form of bulbs or cloves originating in or imported from the Peoples Republic of China (China), was increased from 607c/kg to1 037c/kg.

    The following anti-dumping duty amendments were either deleted as well as created: (i) drawn glass and blown glass, in sheets, whether or not having an absorbent or reflecting layer, but not otherwise worked, of a thickness exceeding 2.5 mm but not exceeding 6 mm (excluding optical glass), classifiable under tariff subheading 7004.90, imported from or originating in India; and (ii) float glass and surface ground or polished glass, in sheets, whether or not having an absorbent, reflecting or non-reflecting layer, but

    otherwise not worked, of a thickness exceeding 2.5 mm but not exceeding 6 mm (excluding optical glass), imported from or originating in China.

    Customs and Excise Warehouse RulesAmendments to the Rules to the Customs and Excise Act which relate to due entry of excisable goods received in bond from a Customs and Excise Warehouse: (i) Rule 19A1.04 Transitional Arrangements Tobacco Products Due Entry of Goods Received in Bond from a Customs and Excise Warehouse; (ii) Rule 19A2.02(d) Rules in respect of Beer Clearance of Beer from the Customs and Excise Manufacturing Warehouse and Payment of Duty; (iii) Rule 19A3.03(a) Rules in respect of Spirits Clearance of Spirits Received in a VMS

    Warehouse and Payment of Duty; (iv) Rule 19A3.04(d)(vii)(aa) Rules in respect of Spirits Removal of Spirits from a Customs and Excise Warehouse for any Purpose other than for Home Consumption and Payment of Duty.

    Switzerland GSP Preferences TerminatedWith the entry into force of the Southern African Customs union (Sacu)/European Free Trade Area (Efta) Free Trade Agreement of which Switzerland is part, Switzerland ceases to grant preferential treatment based on the GSP system.

    Accordingly, exporters are requested not to process any Form A Certificates of Origin for export to Switzerland as these will be rejected by Customs offices.

    Waste Tyre Management Plan Comment DueIn a Government Gazette dated 05 March 2010 the Department of Environmental Affairs

    published a notice in respect of the Draft Integrated Industry Waste Tyre Management Plan for the South African Tyre Recycling Process (SATRP) Company in terms of Section 32(6) of the National Environmental Management: Waste Act, 2008 (Act No.59 of 2008) relating to Waste Tyre Regulations, 2009.

    The document is the culmination of an endeavour to satisfy all environmental and social needs and yet to remain economically feasible without overburdening the consumer. The finalisation of this plan will be the start of removing waste tyres from the present waste stream where they are sent to landfill sites, refitted to vehicles, or dumped in the veld.

    Note: This is a non- comprehensive statement of the law. No liability can be accepted for errors and omissions.

    A WEEkLY summary of the main changes to the South African tariff dispensation and amendments to customs and excise legislation. Email [email protected]


  • FRIDAY April 2 2010 | 3

    Coal industry fired up about 149.6% cargo dues hikeBy Alan Peat

    From April 1 South Africas coal export industry which government always says it is trying to encourage will be seriously jolted by a 149.6% increase in cargo dues.

    The hike is from R2.62/t to R6.54/t which is less than the R7.23/t the TNPA originally applied for, but still a rattling blow for an export industry that relies on price-

    competitiveness to sell its product on foreign markets.

    Just think of this as a before and after scenario. If you previously wanted to export a 30 000-t packet of coal, the cargo dues would have totalled R78 600. Now, with the new tariff, the total is R196 200 a mere one and a half times as much.

    The industry thinks it is grossly unfair said a major force on the coal export scene,

    and the industry is basically very unhappy that the port authorities failed to have dialogue before implementing this ridiculous increase.

    The SA Association of Freight Forwarders (Saaff) is obviously upset with this, and is currently looking for TNPA to justify this specific increase.

    The minister of transport has told the ports that they cannot increase tariffs above

    the consumer price index (CPI), said Saaffs customs and maritime director, Dave Watts. With this now being 5.7%, he could not see how TNPA could even think about an increase of almost 150%.

    Meantime, the SA Association of Ship Operators and Agents (Saasoa) told FTW they were aware of what they phrase as this discrepancy, and were organising a meeting with

    TNPA to discuss the matter.Shipping lines along with

    forwarders, coal exporters and Island View Shipping (IVS) the countrys major bulk carrier operator all point to it having a huge impact on SAs coal export fortunes.

    As one observer of the coal industry put it: A sudden R3.92 price increase per tonne of coal will just blow a lot of our exports out of the market.

    Maputos lack of container capacity holds back citrus exportersBy James Hall

    Nelspruit Even when a new truck lane is operative at the Komatipoort border post, efforts to move larger volumes of SA exports through Maputo will be hobbled until the port increases container shipping to

    global markets.Stakeholders involved

    in the Maputo Corridor said at a corridor assessment meeting in Nelspruit recently that the 24/7 one stop border post operations at Komatipoort were essential, and that completion by mid-year of a separate truck lane could not come

    soon enough.Shipping agents,

    agricultural exporters, transporters and other parties agreed that export costs would decrease fo